Asked by Ja’Juan Clark on May 07, 2024
Verified
Where are bonds mainly sold?
A) in the over-the-counter market
B) in the auction market
C) in banks
D) in the Montreal or Toronto stock markets
Over-the-counter Market
A decentralized market without a central physical location, where market participants trade stocks, commodities, currencies, and other financial instruments directly between two parties without a broker's intermediation.
Auction Market
A public market where buyers and sellers participate in the bidding of prices for assets.
- Comprehend the mechanics and marketplaces for bond transactions, including where bonds are primarily sold.
Verified Answer
AR
Alexia ReyesMay 13, 2024
Final Answer :
A
Explanation :
Bonds are mainly sold in the over-the-counter market, where large financial institutions act as intermediaries between buyers and sellers. This market allows for more flexibility in pricing and terms than the auction market or stock exchanges. While bonds can also be sold in banks or stock markets, the primary market for bonds is the over-the-counter market.
Learning Objectives
- Comprehend the mechanics and marketplaces for bond transactions, including where bonds are primarily sold.